The Hainan Local Financial Administration Bureau of China issued a risk warning on illegal RWA transactions

The Local Financial Administration of Hainan Province of China issued a risk warning on illegal RWA transactions on March 19. Recently, relevant entities have carried out publicity under the names of "Hainan International Data Asset Exchange","Hainan Digital Exchange","Hainan Sea Exchange", etc., claiming that they can carry out RWA real world assets, RDA real data assets and other businesses in compliance with regulations. Market entities conduct business in violation of regulations in the name of trading venues without approval, suspected of illegal financial activities and infringing on the safety of public property. At present, the establishment of "Hainan International Data Assets Exchange" has not been approved within the jurisdiction of Hainan Province. The establishment of trading venues in the province must be approved by the provincial government. Without the approval of the competent department, market operating entities are not allowed to use the words "exchange","trading center" and other words in their registered names, and are not allowed to carry out business activities related to trading venues. In addition, eight departments including the People's Bank of China and China Securities Regulatory Commission jointly issued the "Notice on Further Preventing and Handling Related Risks such as Virtual Currency", which clarified that the principle of "strictly prohibiting domestic and strictly controlling overseas" should be adopted for RWA tokenization supervision, and emphasized that carrying out RWA tokenization activities in China, as well as providing relevant intermediaries and information technology services, are suspected of illegally selling tokens, issuing securities and futures business, illegal fund-raising and other illegal financial activities. It should be prohibited.